Brits ‘feel excluded from mortgage market’

Many Britons wrongly feel that they are excluded from the mortgage industry, it has been claimed.

Tougher lending restrictions on the part of lenders have led to many people believing they will have difficulties in getting a homeowner loan, according to advice website Unbiased.co.uk.

In a survey conducted by the organisation, one in ten of those polled said a 40 per cent deposit would be needed for an average borrower to access a “reasonable” mortgage deal.

However, the firm noted that this figure actually stands at around 22 per cent.

Chief executive David Elms remarked that Brits have been “gripped by the recession doom and gloom.”

He added: “This has led to an extremely pessimistic view of the mortgage market … in reality, there may well be options available.”

Recently, Nationwide made reductions to some of its two, three and five-year fixed mortgages, something that could help homeowners deal with debt management.

By Jamie Price